Canon 2005 Annual Report Download - page 8

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6
EXCELLENT GLOBAL CORPORATION PLAN PHASE III
Purposes of the Company’s Existence
Canon first embarked upon its Excellent Global Corporation
Plan in 1996, with the aim of making continual contributions
to society through technological innovation, and becoming a
corporation worthy of admiration and respect worldwide.
Canon believes there are four purposes to the Company’s
existence: returning a profit to stockholders, providing stability
in the livelihoods of employees, making positive contributions
to society, and investment for continued future growth. Profits
hold the key to achieving these goals, and Groupwide struc-
tural reforms and production innovations implemented in
order to generate profits have led to significant improvement
in business results.
Ten Years of Excellent Results
Consolidated results from 1995 to 2005 show that net sales
expanded 1.8 times, from ¥2.09 trillion to ¥3.75 trillion. The
cost-to-sales ratio moved from 61.3% in 1995 to 51.5%
in 2005, causing pretax profit to multiply 5.2-fold from
¥117 billion to just over ¥612 billion. Net income also jumped
7 times, from ¥55 billion to over ¥384 billion.
Capitalizing on Global Trends
Two major global trends will have a bearing on our future
business. The first trend is the diffusion of broadband networks,
leading to a world where communication driven by the
exchange of strikingly high-quality still and moving images is
increasingly prominent. Canon foresees tremendous business
opportunities, including high-definition (HD) movies at home,
business meetings utilizing multiple TV terminals, and sending
and receiving large-volume data and images.
The second broad trend is the continued advance of
globalization as economic development spreads to more
nations of the world, led by the BRICs economies (Brazil,
Russia, India and China). These newly emerging markets
obviously possess enormous growth potential, and Canon is
actively working toward expanding and diversifying its global
sales structure in preparation for future demand.
Building upon ten years of growth momentum, Canon
will create new business domains and pursue sound
growth by using opportunities arising from global
trends, while maintaining its strong profit structure.
The Excellent Global Corporation